Fujita, Incorporated, has no debt outstanding and a total market value of $$220,100.$ Earnings before interest and taxes, EBIT, are

projected to be $$38,000$ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be $0\mathrm{.}12$ percent

higher. If there is a recession, then EBIT will be $0\mathrm{.}23$ percent lower. The firm is considering a debt issue of $$120,000$ with an interest

rate of $5$ percent. The proceeds will be used to repurchase shares of stock. There are currently $7,100$ shares outstanding. The firm has

a tax rate $21$ percent. Assume the stock price is constant under all scenarios.

a$-1.$ Calculate earnings per share $($EPS$)$ under each of the three economic scenarios before any debt is issued.

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

a$-2.$ Calculate the percentage changes in EPS whern the economy expands or enters a recession.

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a

percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$-1.$ Calculate earnings per share $($EPS$)$ under each of the three economic scenarios assuming the company goes through with

recapitalization.

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$-2.$ Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a

percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$